OFFICER SHORT-TERM INCENTIVE PROGRAM Parameters Document March 2008

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The Officer Short-term Incentive Program is intended to align
executive compensation with the performance of the corporation.
The program provides cash awards to eligible officers based on a
combination of corporate, division, and individual performance
during the performance year. Bonus pool funding is based on the
Compensation and Human Resources Committees determination
of the Companys performance against annual Corporate
Scorecard objectives and other relevant unplanned
accomplishments. The allocation of these funds to divisions is
determined at the Chief Executive Officers discretion, and
will take into account the divisions performance. The
allocation of an award to individual officers will take into
account performance against their objectives and available funds.

Performance Period

The performance period runs from January 1 
December 31.

General Eligibility

An officer is eligible to participate in the program if:

 As of the last business day of the performance
period, s/he is classified by Freddie Mac (in its sole
discretion) as an active, full-time or part-time officer, or an
officer on short-term disability and/or approved leaves of
absence. Individuals who are in terminated status (for whatever
reason) as of the last business day of the performance period
are not eligible to participate in the bonus program for that
year unless their participation is authorized by the Chief
Executive Officer (the CEO), the President and Chief
Operating Officer (the President), or the Executive
Vice President-Human Resources and Corporate Services.
Individuals on terminated status include those on severance,
retirement and long-term disability.

 On the bonus payment date (typically in February or
March of the year following the performance period), s/he is
classified by Freddie Mac (in its sole discretion) as an active,
full-time or part-time officer, or an officer on short-term
disability and/or approved leave of absence. Individuals who are
in terminated status (other than as described in the proviso
below) on the bonus payment date are not eligible to participate
in the bonus program for that year. Individuals on terminated
status include those on severance, retirement and long-term
disability; provided, however, that an officer who
retires (terminates and commences an immediate annuity under the
FHLMC Employees Pension Plan) after the last business day
of the performance period, but before the bonus payout date, is
eligible to participate in the program; and, provided
further, that an officer is eligible to participate in the
program if his/her participation is authorized by the CEO, the
President or the Executive Vice President-Human Resources and
Corporate Services.

Individualized eligibility criteria may be negotiated with
officers and is subject to appropriate approval.

Bonus Targets

Each year, a bonus target is developed for and communicated to
each eligible officer. The targets may be expressed as a percent
of base salary or a fixed dollar amount. Bonus targets are
subject to appropriate approvals.

Discretionary Nature of the Program

Freddie Macs officer short-term incentive program is
discretionary  a payout under the program is not
guaranteed and is only payable if the appropriate authority
decides to award the bonus. Key performance areas are defined in
the Corporate Scorecard and represent corporate performance
goals for the year. The CHRC approves the Corporate Scorecard
applicable to the performance period.

The amount of funding for the program is determined by the CHRC
based upon an evaluation of the Companys performance
against the Corporate Scorecard objectives and other items, as
the CHRC deems appropriate.

The Corporate Scorecard Objectives are generally communicated to
eligible officers generally in the first quarter of the
Performance Year.

 Bonus targets are calculated based on either a fixed
dollar amount or actual base salary earnings (not annual
salaries). If calculated on actual base salary earnings, this
calculation does not include items such as the prior years
bonus, other incentive or cash awards, FlexDollars or vacation
payouts. If calculated on a fixed dollar amount, this
calculation will be prorated using base salary earnings.

 Bonuses are calculated based on the bonus target
developed for the officer.

 An officers total bonus cannot exceed two
times his/her target absent approval of the CHRC for Executive
Officers or an Authorized Officers for non-Executive Officers.

Payout

Other Officers: Generally, bonuses are recommended by the
division heads, approved by an Authorized Officer and paid no
later than March in the year following the performance year.

Executive Officers: Bonuses are recommended by the CEO, approved
by the CHRC (the Audit Committee for the Senior Vice
President  General Auditor), and paid no later than
March in the year following the performance year

CEO/President: Bonuses are approved by the CHRC, with input from
the other independent members of the Board, and paid no later
than March in the year following the performance year. The CEO,
the CHRC, or the Audit Committee, as appropriate, may change
payout dates noted above.

General

Bonus amounts paid pursuant to this arrangement are considered
compensation for purposes of the 401(k) plan, the pension plan
and the SERP.

Nothing in this program is intended to create a contract to
employ any employee for any particular term or period of time or
otherwise abrogate Freddie Macs right to terminate an
employee at any time for any reason.

Freddie Mac reserves the right to terminate this program or
modify its provisions at anytime for any reason at the
corporations sole discretion.